Wednesday, July 14, 2010

One of the country's least loved companies - Monsanto (MON) has suffered through a horrific 2010, missing all rallies as it was sold off relentlessly. In fact, today's movement is the first time the stock has been over the 50 day exponential moving average since January. Most of the year it has not even been able to clear the weaker 20 day moving average.

[click to enlarge]

Indeed, the chart above does not look very much different from BP!

It appears news of the CEO and CFO buying shares might be the driver of today's big move, about $3.5 million between the two. Earnings expectations have been dragged down enough (in the past 60 days EPS for 2010 down from $3.16 to $2.49) that the company might finally have found a bottom in terms of expectations.

If the stock can clear the $56 level, there appears little standing in the way to a run to the mid $65s. One to keep an eye on.

Monsanto Company, together with its subsidiaries, provides agricultural products for farmers in the United States and internationally. It has two segments, Seeds and Genomics, and Agricultural Productivity.

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